If you’re thinking about investing in property abroad, Saudi Arabia can now be added to your list. The country has officially opened its real estate market to foreign citizens and companies.
This move is part of Saudi Arabia’s Vision 2030 plan aimed at boosting the economy and reducing dependence on oil.
What Does the New Law Say?
A new law published in the Umm Al-Qura Gazette on July 25, 2025, allows foreigners to buy property in many parts of Saudi Arabia. This law will take effect 180 days after its publication date.
Who Can Buy Property?
Foreign Residents: Those legally living in Saudi Arabia can buy residential property, but not in Mecca or Medina, and only for personal use.
Foreign Companies: Companies operating in Saudi Arabia can purchase property anywhere for their business or employees.
Embassies and International Organizations: With government approval, they can buy property for office use.
Strict Rules for Mecca and Medina
Buying property in these two holy cities is still restricted. Non-Muslims cannot buy property for personal use here.
Muslims may own property only under very limited and controlled conditions. These rules are to protect the religious and cultural sanctity of these sacred cities.
Types of Property Rights
The new law allows more than just full ownership:
Usufruct Rights: Use and benefit from property without owning it.
Lease Agreements: For short or long-term rental.
Registration, Fees, and Penalties
All foreign buyers must register their property with the National Real Estate Registry. A transfer fee of up to 5% will apply.
Providing false documents or breaking rules can lead to fines up to 1 crore Saudi Riyals (around Rs 22 crore), property confiscation, or legal action.
Relief for Existing Owners
Foreigners who already own property in Saudi Arabia keep their rights. Also, citizens of Gulf Cooperation Council (GCC) countries are now allowed to buy property in Mecca and Medina, which was not allowed before.
When Will Detailed Rules Be Issued?
The government will release detailed rules and procedures within the next six months. This will clarify where foreigners can buy property, how to buy it, conditions, and required documents. Foreign investors should watch for these updates to make the most of this new opportunity.
